Octopus Energy offers customers unique way to reduce bills with £25 investment in green energy
Green energy company Octopus has come up with a unique way for people to reduce their bills with a £25 investment.
With energy bills set to rise again, one power company has come up with a unique way to help customers reduce the cost - and it’s eco-friendly too. Octopus energy recently launched their new investment platform ‘the Collective’ which allows people across the UK the opportunity to own a piece of a green energy project.
The first-of-its-kind platform allows people to directly buy a share of a renewables project like a wind turbine or solar farm. With a minimum investment of £25, any returns go straight into the investor’s pocket as there are no fees and it is free to join.
The news comes following a recent YouGov survey revealing 1 in 3 (33%) British people want to invest in green power. Answering their call, Octopus became the first energy company in the UK with a retail investment platform regulated by the Financial Conduct Authority (FCA).
The platform launches with two wind turbines in Yorkshire and Wales, with plans for several more renewables projects across the country. These turbines are part of Octopus’ pioneering and popular ‘Fan Club’ scheme where customers nearby enjoy discounted electricity when it’s windy.
With a new generation of investors in mind, these turbines offer an annual target return of up to 6% with an investment term of three years. To provide additional benefit for those taking part in these first projects on ‘the Collective’, Octopus is underwriting initial investments made in these turbines.
Collective members who invest £1,000 would own approximately 0.05% of a turbine – and could get a 6% annual return with any dividends paid each quarter, totalling £180 over three years. However, as with any investment, capital is at risk and returns aren’t guaranteed.
Collective members will be able to monitor any returns they earn as well as the clean energy generated from the project in their Collective account. Octopus Energy customers also have the option of linking potential dividends to their energy accounts to reduce their bills.
At the end of the three years, the project aims to buy back the shares at the original price paid – and Collective members can withdraw this or reinvest it in other clean energy projects on the platform.
Zoisa North-Bond, CEO of Octopus Energy Collective said: “Moving to renewable energy represents one of the biggest investment opportunities of our generation – and people can play a powerful role in driving it. We know our customers and lots of people want to do more than use green energy, they want to own a piece of it and turbocharge the shift to a cheaper energy system.
“We’re at the start of a people-powered renewables revolution – and ‘the Collective’ platform is bringing green energy ownership to the many, not the few. It’s time for more people to have the chance to take a stake in their clean energy future.”
People who are interested in finding out more can visit ‘the Collective’ website. As required by regulation, potential members will be verified to ensure this is suitable for them.